May 5, 2022
Shell posts highest-ever quarterly profits as Ukraine war roils energy markets
Shell recorded its highest-ever quarterly profits as it capitalised on the volatility in global energy markets following Russia's invasion of Ukraine. "The war in Ukraine is first and foremost a human tragedy, but it has also caused significant disruption to global energy markets and has shown that secure, reliable and affordable energy simply cannot be taken for granted," said Shell chief executive Ben van Beurden. "Favourable trading conditions" meant earnings from what Shell calls trading and optimisation were similar to the previous quarter for gas and "Significantly higher" for oil products. Cash flow from operations for the first quarter was $14.8bn. "The bottom line here is that Shell continues to generate operating cash flows and free cash flows well in excess of any of its peers," said Biraj Borkhataria, analyst at RBC Capital Markets. As with BP, Shell does not disclose how much of its earnings were generated in the UK. Shell was the sixth-largest gas producer in the UK's North Sea last year, according to data from consultancy Rystad Energy.
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